Wednesday, 8 July 2020
- Dollar holds gains as coronavirus woes sap confidence
- Asian shares mixed as corporate earnings loom
- Oil dips as U.S. inventory build stokes supply fears
The dollar held onto gains on Wednesday as a resurgence of the coronavirus in the United States and the return of lockdowns in some countries boosted safe-haven demand for the U.S. currency.
The dollar traded at 107.58 yen in Asia following a 0.3% gain on Tuesday. Against the euro, the dollar was quoted at $1.1274, also holding to a 0.3% gain from the previous session. The greenback bought 0.9426 Swiss franc little changed on the day. Sterling changed hands at $1.2540 and was quoted at 89.88 pence per euro.
Our View on USD / INR
The rupee is likely to open flat around 74.83.
The Rupee is likely to have resistance at 74.95 (7 DMA) and 75.22 (100 DMA) and support at 74.45 (Bollinger Band) and 74.00 (Big Figure)
Asian stocks were set for a mixed open on Wednesday, as an increase in new coronavirus cases in some parts of the world cast doubts over the economic recovery, leading some investors to cash in on recent gains ahead of earnings season.
Australian S&P/ASX 200 futures lost 0.50% in early trading, while Japan’s Nikkei 225 futures added 0.11%, and Hong Kong’s Hang Seng index futures rose 0.39%. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.78% lower. The Dow Jones Industrial Average fell 1.51%, the S&P 500 lost 1.08%, and the Nasdaq Composite dropped 0.86%.E-mini futures for the S&P 500 were up 0.13%.
Our View on Stock Market
The Indian stock market is expected to open Flat to Slightly positive around 20 to 30 points from yesterday close.
The Nifty futures are likely to open around 10,780.
The likely range for the day is 10,600 – 10,850
Oil prices eased in early trade on Wednesday as industry data showing a build in U.S. crude stockpiles and a forecast for U.S. crude output to fall less than anticipated in 2020 added to worries about oversupply.
Brent crude futures fell 13 cents, or 0.3%, to $42.95 a barrel. U.S. West Texas Intermediate (WTI) crude futures dropped 10 cents, or 0.3%, to $40.52 a barrel.
Source : Reuters
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